Description

DC-1a 25¢ 1870
This denomination was issued beginning in 1870 as a stopgap to halt
the influx of American silver coins to Canada. During the American
Civil War, U.S. silver coins had depreciated about 5% in value
against gold. These coins soon began to flood into Canada, where
they were accepted at full face value. As fast as the coins could
be exported, they returned, creating a seemingly never ending cycle
which began to crowd out Canada's own currency, even though the
coins were not accepted by Canada's banks and post offices. To
break this cycle, the Canadian government adopted a three part
program. First, the government resolved to buy up the American
silver at a five to six percent discount and export it. Second, the
value of American silver was pegged at an artificially low 80¢ on
the dollar to prevent its return. To take its place, the government
ordered its first silver coins from the Royal Mint in London.
Finally, 25¢ fractional notes were to be printed and issued to
provide change while the new coinage was being prepared.
Although the fractional notes were designed to be a temporary
expedient, they proved popular with the public, and remained in
circulation for the next 65 years. This piece comes from the very
scarce "A" series, the first printed. PMG Choice Extremely Fine
45 Net, the "Net" grade due to a small repaired hole near the
bottom of the note.From The Thomas M. Flynn Collection